We hear a common refrain from would-be buyers on the streets: “But there’s just no inventory!” The numbers tell a different story. There are currently 69 offerings across Routt County, the same number as last month, but there were 84 closings county-wide. The average days on market also remains incredibly low, currently at just seven days.
What the Numbers Tell Us
The numbers tell us a couple of things: First, that listings go under contract almost as quickly as they’re put on the market. Second, while standing inventory has remained persistently low, the number of actual closings has ticked up showing that there is inventory; it just sells fast. This has been the trend in Routt County for the last dozen years, however the pandemic super-charged it.
Prices Remain Strong
Across the county, the average price for a single-family home remains strong at just under $1.4M, though that is down by $50K from the previous few months. Prices for condos/townhomes continue to appreciate rapidly, now at $820K up 30% from last year. The average price per square foot for all property types in Routt County is over $500. Despite a large jump in mortgage rates, April 2022 has been the biggest month of the year thus far in terms of volume, with $125M in sales. Rates on 30-year fixed mortgages are now solidly above 5%, which will eventually tamp down buyer demand, especially in the entry level market.
Is There a Bubble Burst Coming?
With home prices continuing to climb (residential properties in Routt County appreciated between 17-27% on an annual basis each month of the last two years), rising interest rates, and inflationary pressures, many buyers continue to wonder if a bubble burst is on the horizon. Leading economists continue to agree that it’s unlikely; there is still very real demand for homes, and the underlying economic conditions and lending policies are extremely different from 2008. The Chief Economist for the National Association of Realtors, Lawrence Yun, predicted last week that inflationary pressures will slow demand in 2022, which should help control rapid home appreciation (but not bursting any bubbles). Home price escalation, as we’ve seen the last two years, is unsustainable and many housing economists are now predicting 2022 price appreciation to be in the 4-10% range, more in line with historic norms.
With the market moving as quickly as it is, whether you’re considering buying or selling, one of our experienced agents is here to help you with any and all of your questions. Give us a call to find out how.